Dr Kahneman was asked what fools us most frequently. That was simple, he said: overconfidence
"It's the idea that you know better than the market, which is a very strange idea," Dr Kahneman told The Washington Post. "Individual investors have no business at all thinking they can do better."
So beware of low liquidity stocks and there are reasons for being unloved by the market unless you think Dr Kahneman is talking rubbish.
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Here’s what to expect for the T-bill auction on 27 Feb
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What happened? Despite the fall in T-bill yields, many investors still seem
to be watching the upcoming auction closely. After all, some may be hoping
th...
4 hours ago
True to some extent, i guess this is one of the main reasons to go with Index investing.
ReplyDeleteBtw...any idea if this Dr Kahneman is referring to Daniel Kahneman? If i'm not wrong, i think alot of research on "value" is based on his work many years ago.
Princeton University psychologist Daniel Kahneman was awarded the Nobel Prize in Economics for, as the Swedes put it, integrating "insights from psychology into economics, thereby laying the foundation for a new field of research."
ReplyDeleteYup, that's him i guess. ;)
ReplyDelete